Stocks Pop After Cornyn Suggests Tax Bill Deal "Possible" Today

Despite numerous headlines indicating a tax bill deal early next week, Republican Senator John Cornyn just told media that there "may be a tentative tax bill deal today." Algos liked the news and immediately bid stocks higher (despite no knowledge of what is in the 'deal').

The Senate has “ping-ponged” offers back and forth with House and is making good progress, he says.

And stocks popped on it...

Of course, its also "possible" that the deal is not done today... and that's why we were intrigued to see 'high tax' stocks underperforming...

The main areas of contention: AMTs and treatment of SALTs (Republicans were planning to tweak corporate rate from 20% to 21-22% to pay for some of the changes but this idea is facing fierce resistance from the business community – Washington Post).

Brady Says Compromise Likely Coming Friday (reported at 1035ET)

House Ways and Means Chairman Kevin Brady, who’s overseeing the House-Senate conference committee for tax negotiations, said the panel will likely come to an agreement on final legislation by Friday.

“We are on track for this week,” Brady told reporters, referring to a so-called conference report.

Conference reports generally go point-by-point through areas of disagreement and say how each was resolved. For example, if the House position on a provision is the one they’ve agreed on, the report will say that with respect to that provision, the conferees propose that the Senate recede from its position and concur with the House’s position.

House Majority Leader Kevin McCarthy told GOP members the goal is for the House to vote on the tax bill next Tuesday, Dec. 19, according to Representative Lamar Smith of Texas.

Representative Tom Cole of Oklahoma said he heard that the goal was Tuesday, but there wasn’t an announcement about it directly.

“The time frame of a vote next week is very realistic,” said Representative Tom Reed of New York. -- Erik Wasson